he majority of people would face financial hardship after a just a few months without work, according to Gallup?s recent Economy and Personal Finance poll. 14% of U.S. workers say they could go just one week before experiencing significant financial hardship if they were out of work. 29% said they could last one month. 26% said they could last four months, while only about one-third of workers could get by for a year or more. Prime candidates for disability insurance include:
Single People: With 60% of single workers lacking disability insurance to protect their income and paycheck, according to a 2012 Hartford survey one in three millennials say they would have to rely on savings if they weren’t able to work for more than six weeks, and two in 10 said they would either take money out of a 401(k) or use credit. Just over two in 10 said they would ask friends and family members for financial help or move back home with their parents. With more than a third of unmarried men and more than half of unmarried women, who are primary wage earners,living from paycheck to paycheck – disability insurance provides a way to pay the bills while on the road to recovery.
New Families: Young families are hopeful about the future, but the truth is no one can be certain what life holds. First-home purchases, welcoming a new baby, weddings and honeymoons can all be expensive milestones for a new family. Given that in that time of their careers, their salaries still haven’t peaked – most young families rely on rather limited budgets to meet their on-going needs and expenses. However, they frequently overlook disability insurance as a necessity – something, which can cost them dearly in the long-run.
Senior Families: As the years roll by, families assume more and more financial responsibility, such as raising children, college education and financial preparation for retirement. Despite the notable increase of income that comes with the stability of having a career, the prospect of sudden loss of income is frighteningly real. Long term disability insurance coverage can help negate such worries.
While every small business is different, most owners simply can’t afford to stop working even for a short period of time.As a small business owner you need to take the subject of disability insurance very seriously as any illness or work-related accident can lead to bankruptcy. The best solution to the problems arising from the possible disability of an owner is to have disability insurance to mitigate risks.
There are multiple different occupation classes incorporated into the average premium for business owners, as no two businesses are the same, which gives owners the flexibility to select a disability insurance plan that best fits their business model. This way you have the peace of mind that your stream of income is protected whether or not you are able to work.